John Hancock Acquires Three Office Properties in Key U.S. Markets

19 December 2013

BOSTON - John Hancock, the U.S. division of Manulife Financial Corporation, one of the largest life insurance companies in the world, announced today that it has acquired three office properties totaling US$618 million in New York, Chicago and Boston.

"We are constantly assessing opportunities to grow our real estate investment portfolio. We’ve done just that yet again with these three excellent properties that align nicely with our strategy of investing in core and diverse markets," said Kevin Adolphe, President and CEO of Manulife Real Estate and Manulife Asset Management Private Markets. "We remain optimistic about these markets and will continue to evaluate core office, industrial and multi-family residential property investments throughout Canada, the United States and Asia."

John Hancock’s real estate portfolio is diversified by both geography and asset type, consisting primarily of prime office and industrial properties, as well as select retail and multi-family residential properties, in key metropolitan centers throughout Canada, Asia and the United States. With these new acquisitions, the Company’s global real estate portfolio now represents a market value of US$10.4 billion (C$10.7 billion) with properties totaling more than 39 million SF. Other key markets in the United States include Washington DC, Atlanta, Los Angeles and San Francisco.

"These properties represent the type of high quality assets we acquire in key markets as a priority for our strategic plan. The strong tenant rosters and superb locations make these excellent additions to our investment portfolio," added Ted Willcocks, Global Head of Asset Management for Manulife Real Estate.

100 William Street, New York City

100 William Street, a 422,000 SF 21-story class A office building in New York’s Financial District, was acquired from Mitsui Fudosan America for US$166.5 million (C$176.5 million) in a deal that closed December 10, 2013.

The property was built in 1972 and substantially renovated in 2012. It was designed by renowned architect Emery Roth and is located in the heart of the Financial District in Lower Manhattan. The building is 95 per cent leased to a diverse array of tenants.

The Company’s New York City Metropolitan area real estate portfolio is approximately US$688 million (C$729 million) and totals more than 1.9 million SF.

CBRE acted as broker on the 100 William Street transaction.

200 South Wacker, Chicago, Illinois

200 South Wacker, a 40-story premier trophy office building in the Chicago central business district, was acquired from a joint venture comprised of Equity Group Investments, Pearlmark Real Estate Partners and TEIR REIT for US$214.5 million (C$227 million) in a deal that closed December 19, 2013.

The property is a 754,750 SF architectural icon, built in 1981, extensively renovated in 2011 and designed by prominent architect Harry Weese & Associates. It is located in the heart of Chicago’s top performing West Loop submarket. The property is 96 per cent leased to a diversified mix of well-established tenants.

John Hancock’s Chicago real estate portfolio is approximately US$824 million (C$873 million) and totals approximately 5.7 million SF.

HFF marketed 200 South Wacker on behalf of the seller.

Wellesley Office Park, Greater Metropolitan Boston, MA

Wellesley Office Park, located in Greater Metropolitan Boston, was acquired from an affiliate of Blackstone for US$237 million (C$251 million) in a deal that closed December 11, 2013.

The award-winning 650,000 SF office park is located in Wellesley, one of Boston’s most prominent and affluent suburbs. It is currently 90 per cent leased with a blue chip roster of long-term tenants and received the Office Building of the Year designation by BOMA in 2010.

The Company’s Boston real estate portfolio is approximately US$1.1 billion (C$1.2 billion) and totals more than 2.5 million SF.

HFF acted as broker on the Wellesley Office Park transaction.

About Manulife Real Estate
Manulife Real Estate is the global real estate arm of Manulife Financial Corporation with fully integrated in-house capabilities and 70 years of experience as an active investor, owner, developer and asset manager of commercial real estate. Diversified by both geography and asset type, the portfolio consists primarily of prime office and industrial properties, as well as select retail and multi-family residential properties, in key metropolitan centers throughout Canada, Asia and in the United States, through Manulife’s U.S. division, John Hancock. In addition to equity real estate, Manulife Real Estate manages the space requirements and own use facilities for Manulife’s operations around the world. In 2011, Manulife Real Estate launched a new real estate fund platform, extending the benefit of its long established real estate asset management expertise to institutional investors. As at September 30, 2013, the Manulife Real Estate portfolio totaled more than 37 million square feet of assets under management with a market value of C$10.1 billion (US$9.8 billion). Additional information about Manulife Real Estate can be found at http://www.manuliferealestate.com.

About John Hancock Financial and Manulife Financial
John Hancock Financial is a division of Manulife Financial, a leading Canada-based financial services group with principal operations in Asia, Canada and the United States. Operating as Manulife Financial in Canada and Asia, and primarily as John Hancock in the United States, the Company offers clients a diverse range of financial protection products and wealth management services through its extensive network of employees, agents and distribution partners. Funds under management by Manulife Financial and its subsidiaries were C$575 billion (US$559 billion) as at September 30, 2013. Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE, and under '945' on the SEHK. Manulife Financial can be found on the Internet at manulife.com.